Newman Ferrara LLP has begun an investigation into potential claims against the board of directors of Complete Genomics, Inc. (“Complete Genomics”) (Nasdaq: GNOM) concerning the proposed acquisition of Complete Genomics by BGI-Shenzhen.
On September 17, 2012, Complete Genomics announced that it had entered into an agreement and plan of merger to be acquired by BGI-Shenzhen in an all cash deal valued at approximately $117.6 million. Under the terms of the agreement, Complete Genomics’ shareholders will receive $3.15 for each share of Complete Genomics stock owned.
However, Complete Genomics’ common stock traded at above the $3.15 offer price as recently as May 29, 2012 when it traded at $3.20 per share. Complete Genomics’ common stock also reached a trading high of $7.73 per share within the past year. In addition, in connection with the deal, Complete Genomics entered into an agreement with a wholly owned subsidiary of BGI-Shenzhen to be given a $30 million bridge loan to fund operations once the proposed acquisition is completed.
Complete Genomics’ Board of Directors has unanimously approved the proposed merger agreement which is expected to close early next year.
Newman Ferrara LLP’s investigation concerns whether Complete Genomics’ Board of Directors has breached its fiduciary duties to act in the best interests of Complete Genomics’ shareholders and to take all necessary steps to ensure that Complete Genomics’ shareholders receive the maximum value readily available for their shares of Complete Genomics common stock.
Concerned investors are encouraged to contact Newman Ferrara attorney Roy Shimon at (212) 619-5400 or
to discuss this investigation, their rights, or potential remedies.
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